First time estimated tax payments?

Question

If I am self employed and being paid with a 1099 and have to start paying estimated taxes, can I still pay them if it is after 4/15/07. Can they be paid late? This is the first time I have ever had to do this.

Answer 1

is this 2006 or 2007 self employment income?

if 2006 you must have paid the lower of 90% of current year tax liability(2006) or 100 % of the prior year(2005) tax liability. to avoid any underpayment penalties completely. you may be able to reduce any penalty by completing form 2210 and employing the annualized income installment method and completing those sections.

if 2007 (above is still true but would be 2006 and 2007 respectfully) but first estimated payment would not be late if postmarked by 4/17/07 and will probably not result in an underpayment penalty if you make four equal quarterly tax payments.
the due dates are as follows Apr17, Jun 15,Sep 15, and January 15 of the following year. the IRS form you require is a 1040 es.

if this is 2007 income and if you want to pay the minumum and avoid any communication from the irs i would suggest you pay 1/4 of your total previous years tax each quarter, by the due date and you WILL avoid any and all underpayments for 2007
example your total 2006 tax was 2000.00 make 4-$500.00 payments (on time) and complete and file the 1040es with your form 1040 to properly document for the irs to know what you have done and avoid any communication.

Answer 2

You can pay yourself a salary at the end of the year (W-2, 941, UCT, 940) & the IRS will consider it paid throughout the year - so if you miss a quarterly payment, or you are late in paying one, yes the IRS can assess you a 2210
penalty after you file your Form 1040.......

Then just pay yourself a salary towards the end of the year, pay your Social Security and Medicare taxes (15.3%) plus your Federal withholding, and make a federal depository to your bank. Do the same for the State.

The IRS and/or your State considers W-2 withholdings to have been paid throughout the year, even if you pay your tax liabilities on December 15th.

Answer 3

Technically your first payment is due today, but if you just do the other three quarterly payments and pay in enough to cover all that you owe, there probably won't be a problem.

Answer 4

The charge on a million/15/09 substitute into probably a 2008 expected charge. in spite of the undeniable fact that, you have no longer have been given the choice to categorise it now. you may desire to maintain on with in spite of type it substitute into given in January 2009.

Answer 5

u can pay today without penalty for 2006.
after today there will be additional penalty.
U can pay till dec 15th for year 2007